There’s no escaping the impact of tariffs. When President Donald Trump recently announced he would raise tariffs on nearly everything the U.S. imports from most of our trading partners to 15%, markets stumbled. These import taxes affect nearly every business by raising the costs of basic goods, such as steel and electronics.
However, there are some energy sector companies that are less affected by tariffs than others. Dominion Energy (NYSE: D) and Williams Companies (NYSE: WMB) offer investors an antidote to tariff concerns, both from the U.S. and abroad, because they focus solely on domestic consumption. Both also appear to be safer artificial intelligence (AI) plays than software stocks, as they are already reaping the benefits of AI growth without having to lay out unusually high amounts on capital expenditures.
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Rising demand for energy will likely drive profits for both companies. Dominion is a utility that serves 4.5 million electric and natural gas customers in Virginia, North Carolina, and South Carolina. If it faces higher costs due to tariffs, it can petition state utility commissions to allow it to raise its rates to compensate. Williams Companies is a midstream energy operator that owns natural gas pipelines in the U.S. Its revenues are based on the volume of natural gas moving through its pipes, not on the cost of the steel used to build those pipes years ago. Its contracts also include escalator clauses that automatically increase the fees it charges based on inflation.
Dominion Energy is coming off a strong year. Revenue rose 14% to $16.5 billion in 2025, and earnings per share (EPS) increased 48% to $3.45. The company expects its operating EPS to grow by 5% to 7% annually through 2030, and forecasts that it will be in the higher end of that range from 2028 onward. The stock is up more than 7% this year.
Northern Virginia, which happens to be the home of the world’s largest concentration of data centers, is in Dominion’s service area, and the company increased its five-year capital spending plan by about $15 billion to support surging electricity demand from those data centers. That extra spending will likely pay off handsomely for the company. Since 2016, data center power use has grown at a compound annual rate of about 20%. The hyperscalers that are building data centers need dedicated sources of energy for them, and Dominion, through its wind farms, nuclear facilities, and natural gas power plants, provides what they require.
